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Liquidity

📊Liquidity GrabSmall and big players tend to acquire larger positions in the market than they can afford, in an attempt to benefit from the leverage. This is where the concept of liquidity grab comes into play. Large trades and institutional investors need to locate liquidity areas in the market to complete their trades. Stops and stop-loss orders are critical for survival in a leveraged market. Stop hunting is a common practice in Forex trading, where traders are forced to leave their positions by triggering their stop-loss orders. This can create unique opportunities for some investors, which is called a liquidity grab. Stop hunting is a trading action where the price and volume action threatens to trigger stops on either side of support and resistance. When a large number of stops are triggered, the price experiences higher volatility on more orders hitting the market. Such volatility in price generates opportunities for participants to enter a trade in a favourable environment or protect their position. The fact that too many stop losses triggered at once result in sharp moves in the price action is the reason behind the practice of liquidity grab. 📍 What is liquidity sweep? In trading, a liquidity sweep is the process of filling an order by taking advantage of all available liquidity at multiple price levels. Traders use this method to ensure their orders are filled at the best possible price by breaking up their order into smaller sub-orders and spreading them across multiple price levels. Institutional traders and high-frequency trading firms commonly use liquidity sweeps for efficient and quick execution of large trade volumes. 📍 Liquidity Zones Big players in trading aim for the best prices but face challenges finding sufficient counter-forces to fill their large orders. Entering the market at low liquidity areas creates more volatile markets, negatively impacting the average price. Conversely, entering at high liquidity areas results in less volatile markets, ensuring a better average price for the position. These liquidity zones are where stop-loss orders are placed, and the concept of "liquidity grab" comes from the need for big players to enter the market in these zones to take large positions. Traders use swing lows and swing highs to create these liquidity zones and place stops as reference points, resulting in either a reversal to the mean or a breakout of the level. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
21
NVIDIA | NVDA | STOCK | DECRYPTERS Hi people Welcome to Team Decrypters Decent Short opportunity on NVIDA STOCK --Head & Shoulder Pattern Break out and Target completed . --Price is Supported by All Major EMAS. --A down ward channel Break Down And GAP filled. --After a Strong upward movement Price should reject from Multi year Trend line. --A Potential Retracement Short should ATLEAST play From Resistance levels. -Price is overall Supported by All MAJOR EMAS. --Potential Double Top formation. Note :- Nasdaq Should Retrace so will the stock , A Setup Should be traded with Confirmation Only
NASDAQ:NVDAShort
by DECRYPTERS
XAUUSD We expect XAUUSD to correct towards 1840 in the coming week(s) Expecting short-term USD strength, correction on XAU and other cross currencies is likely. Currently, we are in a triangular pattern of congestion in a smaller and smaller area. The market seems to be acquiring liquidity for the next move, which we expect to be to the downside, as volume on the recent highs was higher than usual if it would be an upside continuation therefore we expect MMs to push the market down for further liquidity grab. Don't hesitate to reach out let's discuss! If you have any questions please don't be shy!
OANDA:XAUUSD
by FastFx_Ltd
ETHUSDT Trading Plan---X--- : Potential reversal square : demand and supply The analysis is based on ORDERFLOW. The trend structure in H4 is bull , so we are going to entry long positions before becoming bear . We could identify some demand and supply zones by orderblock regarded as a large-scale buy or sell zone . It was mentioned above , the trend is a going up , therefore we will hardly entry short positions , ALWAYS FOLLOW THE TREND . There are 2 opportunities to trade Long : 1675.74 SL : 1653.23 TP : 1886.46 RR=9.36 Long : 1632.18 SL : 1610.31 TP : 1886.46 RR=11.63 if price goes to the yellow line before reach our limit orders, the trades should be cancelled .
Long
by khlin712
US 30 ASIAN BSL SWEEP SHORT SET - UP ICT SMC BASED TRADE 1:7 RRHELLO EVERYONE HOPE EVERYONE IS DOING GOOD HAVING A GOOD ONE. HERE'S A LOOK AT POSSIBLE SCENARIOS THAT COULD PLAY OUT IN THE DOW DURING LONDON SESSION. US 30 BUILD LQ DURING ASIAN SESSION LOOKING FOR A SWEEP OF THE BUY SIDE LIQUIDITY. * Also looking to take yesterdays highs before looking to target sell side liquidity on the DOW. * Should this happen looking for entries short with the ICT 2022 entry model. * Targeting the Asian sell side LQ. -This would be an ICT JUDAS SWING SET UP * Overall target will be the DAILY OPEN. * + RSI DIVEGENCE CONFLUENCE lets see how it goes. IF THIS IDEA ASSISTS IN ANY OR IF YOU LIKE THIS ONE SMASH THAT LIKE BUTTON & LEAVE A COMMENT. ALWAYS APPRECIATED ____________________________________________________________________________________________________________________ * Kindly follow your entry rules on entries & stops. |* Some of The idea's may be predictive yet are not financial advice or signals. | *Trading plans can change at anytime reactive to the market. | * Many stars must align with the plan before executing the trade, kindly follow your rules & RISK MANAGEMENT. _____________________________________________________________________________________________________________________ | * ENTRY & SL -KINDLY FOLLOW YOUR RULES | * RISK-MANAGEMENT | *PERIOD - INTRA DAY SESSIONS TRADE
UShort
by PULEMokhothu
6